The major players in the market continue to increase their positions in Ethereum (ETH). Institutional and whale investors are investing millions of dollars in the second largest cryptocurrency.
These purchases are occurring despite the recent weakness in Ethereum's price. The asset has lost nearly 3% in value just this week. Despite price pressure, there is no noticeable decrease in the long-term commitment of institutional and whale investors.
Price Weakness is Not Stopping Large Buyers
According to BeInCrypto Markets data, Ethereum continues to struggle with the decline in the overall cryptocurrency market. At the time of this report, ETH is trading at 2,929.23 dollars, with a loss of 1.06% in the last 24 hours.
While the drop may have spoiled the mood for some investors, others see this process as a buying opportunity. The blockchain analysis company Lookonchain stated that BitMine Immersion Technologies purchased 67,886 ETH with a transfer worth approximately 201 million dollars.
Just before this purchase, BitMine had bought an additional 29,462 ETH worth 88.1 million dollars from BitGo and Kraken a day earlier. These consecutive large transactions indicate that the firm is following an overall accumulation strategy.
Just last week, BitMine purchased a total of 98,852 ETH, and its total Ethereum holdings exceeded 4 million units. The fact that the Ethereum price is slightly above BitMine's average entry level of 2,991 dollars shows that the company is not affected by short-term fluctuations.
A notable buyer was Trend Research. This second-degree investment firm, managed by LD Capital's founder Jack Yi, purchased 46,379 ETH today. Thus, the total amount of ETH held by the institution approached 580,000.
EmberCN reported: 'They started hunting for dips in ETH at the beginning of November and began buying around 3,400 dollars. So far, they have accumulated a total of 580,000 ETH (approximately 1.72 billion dollars). Their average cost is about 3,208 dollars. This means they are sitting on an unrealized loss of about 141 million dollars.'
Jack Yi mentioned in a public statement that the institution has prepared another 1 billion dollars for ETH purchases and warned them not to open short positions in Ethereum.
Large on-chain whales continue to remain active. The wallet known as the '66k ETH Borrow' whale, which previously accumulated approximately 1.57 billion dollars worth of 528,272 ETH, additionally purchased 40,975 ETH (approximately worth 121 million dollars).
Lookonchain reported: 'Since November 4, this whale has acquired a total of 569,247 ETH (1.69 billion dollars). Of this, 881.5 million dollars was borrowed from Aave to be used for ETH purchases.'
Fasanara Capital followed a leveraged strategy. The company purchased 6,569 ETH worth 19.72 million dollars over two days before investing in the Morpho protocol. They then borrowed 13 million dollars in USDC to make further Ethereum purchases.
Ethereum whales are divided in buying and selling.
However, not all major players are buying; some are reducing their positions. BeInCrypto reported that Arthur Hayes transferred 682 ETH (approximately worth 2 million dollars) to Binance today.
Lookonchain shared that Hayes sold 1,871 ETH (5.53 million dollars) in the last week and acquired Ethena (ENA), Pendle (PENDLE), and ETHFI.
Hayes X made the following statement: 'We are moving away from ETH and focusing on quality DeFi projects that we believe will perform much better with increased liquidity.'
As a contribution to the sales pressure, the Onchain Lens report indicated that a Bitcoin OG whale deposited 100,000 ETH (approximately worth 292.12 million dollars) into Binance. Such large transfers on cryptocurrency exchanges are generally seen as preparations for sales but do not immediately mean a sale.
Previously, ETHZilla had paid off its senior secured convertible debt by selling 24,291 ETH worth 74.5 million dollars. Despite these opposing moves, according to BeInCrypto data, the sales of long-term Ethereum investors have decreased by more than 95%.
